BofA: Buy Cyclical Stocks for a Coming Recovery

The bank's top strategist writes that economically sensitive stocks will beat bond proxies and growth stocks.

U.S. large cap stocks beat all other asset classes in 2Q, outperforming small caps, global equities, bonds, cash, and gold. While the Russell 2000 staged a comeback in May and June, small lagged large for the full quarter and for the full first half. Despite strong 2Q performance, stocks still trail bonds and gold for the year.